Govt to ensure Public Service Wage Bill does not exceed 45%

Finance Minister Felix Mutati says government will ensure that the Public Service Wage Bill does not exceed 45 percent of domestic revenues by 2020.

Mr. Mutati says the Public Service Wage Bill currently absorbs over 51 percent of domestically generated resources, thereby crowding out domestically financed operational and capital expenditures.

Mr. Mutati says in this regard, government is proposing to spend an average of K24.3 billion per annum on personal emoluments over the medium term, translating to 43.0 percent of domestic revenues or 7.7 percent of GDP.

He says government expenditure on goods and services will primarily channeled towards requisites for frontline service delivery such as drugs and medical supplies, school requisites and operations of security wings.

He adds that overall, government projects to spend an average of K6.6 billion per annum to facilitate its operations.

On the interest payments, the Finance Minister says the need to finance development programmes has over the past decade necessitated a rise in borrowing levels.